11 November 2018

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BJP PM Modi may destroy RBI as an Institution

BJP PM Modi may destroy RBI as an Institution
The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.
Though originally privately owned, since nationalisation in 1949, the Reserve Bank is fully owned by the Government of India.
The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as:
"to regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage; to have a modern monetary policy framework to meet the challenge of an increasingly complex economy, to maintain price stability while keeping in mind the objective of growth."

The Reserve Bank's affairs are governed by a central board of directors. The board is appointed by the Government of India in keeping with the Reserve Bank of India Act.

Question – Do you trust RBI if they are compared to elected politicians including PM of India.
Yes Majority Indians will agree that they trust RBI they do not trust Indian elected politicians including elected Prime Minister of India.

Why Trust RBI?
Regarding RBI , RBI is answerable to Government of India.

Reason is simple there is no one  in India who will ask and control the legal corruption done by the Prime Minister of India or elected politicians.

Example – Rafale Scam – Yes scam happened in Rafale but what ever we do no one will go to jail as it is legal scam.
No Prime Minister will give deal or contract to his friend without any auction.

Farmers are committing suicide but government do not have money for farmers, they got money for advertisement, building statue and bullet train, all these expenses are useless, waste of money. Waste of your money and my money.

You may enjoy bullet train when farmers are committing suicide, small kids are dying because of no food malnutrition, but no good human being will ever enjoy beauty of statue, or bullet train when other fellow Indians are dying because of wrong policies of government of India currently it is BJP PM Modi government.

We can not compare Indian bank system with international banking systems.
Can we compare Indian drinking water with American drinking water.
No we can not because you will find Indian drinking water is dirty we need to buy RO filters for good health.

Compare Indian Banking system and I am very proud to say Indian Banking system is No. 1 if it is compared with American Banking system or European.

There is just one problem corruption in Indian Banking system that is NPS solution is very simple just publish the names of all NPA account holders every month.

On June 30, RBI's surplus reserve stood at Rs 9.63 lakh crore (approx). This includes balances in Contingency Fund, Asset Development Fund (ADF), Currency and Gold Revaluation Account (CGRA), Foreign Exchange Forward Contracts Valuation Account (FCVA) and Investment Revaluation Account Rupee Securities (IRA-RS), besides some minor accounts head.

Surplus Reserve clearly shows that RBI is doing its job satisfactorily

For fiscal 2017-18, the RBI transferred surplus Rs 50,000 crore to the BJP Government 

Alberto Ramos, the Argentinian analyst at Goldman Sachs to say - "Using central bank reserves to pay government obligations is not a positive development and the concept of excess reserves is certainly open to debate. It weakens the balance sheet of the central bank and provides a wrong incentive to the government, as it weakens the incentive to control the rapid expansion of spending and to promote some consolidation of fiscal accounts in 2010."

Now as per Media reports BJP Modi government has already thrice asked the RBI to transfer Rs 3.6 lakh crore from its reserves.

But RBI declined to give the money to BJP Modi Governemnt.
Excellent Decision – RBI should not give a single penny to Indian Government who do not understand how and where to spend tax payers money.

What BJP Modi Government will do with this money?
1- Build Statue
2-Plan and start more bullet trains
3-Spend More money on advertisement
4- Increase salaries and pension and perks of  Lower house  or Upper house members.

For me it is waste of Money.

Now as per media reports BJP Modi government is planning to bring an amendment in such a way that government will impose the limits on RBI reserve funds , means government will fix a rule that RBI can only keep surplus of Rs. 1 lakh crore only and automatically all surplus money funds will get transferred to the Indian government.
After this government of India will spend that money as they wish , we Indian citizens will never know how much money RBI is diverting to government of India.

Because of such amendments RBI wont have any surplus , in emergency this surplus is very helpful for India as a nation , in emergency who will help RBI or India.
No country helps to other country without good benefits or contracts.

Hope BJP Modi government does not bring any amendment and destroy RBI as an Institution.

Reality views by sm -

Sunday,November 11, 2018

Tags – RBI India Surplus Money BJP PM Narendra Modi


Kirtivasan Ganesan November 11, 2018  

Had been following Reality Views for more than 10 years.
There were hopes for India when Anna was in limelight.
There were also hopes in some section when Baba Ramdev took attention of the masses.
Whole India is expecting miracle from Modiji presently.
It seems India is not going to benefit with pillars of India are threatened.
You have written RBI is in danger. I am following your opinion as I don't understand corruption myself.
It is sad for India.